Xiaomi reported a strong acceleration in sales growth in the third quarter, driven by demand for its affordable smartphones. Revenues rose 34.5 percent year-on-year to CNY 72.2 billion, and the company shipped 45.3 percent more smartphones than in Q3 2019, at a total 46.6 million units.
Smartphone revenues rose 47.5 percent year-on-year to CNY 47.6 billion, revenues from other IoT and lifestyle products increased 16.1 percent to CNY 18.1 billion, and internet services revenue was up 8.7 percent to CNY 5.8 billion. Xiaomi said revenue from outside China rose 52.1 percent to CNY 39.8 billion, setting a new record of 55.1 percent of group revenue coming from abroad.
The company's adjusted net profit rose 18.9 percent on an annual basis to CNY 4.1 billion in Q3.
Xiaomi attributed the growth to a greater penetration in the Chinese premium smartphone segment as well as growing market share abroad. According to Canalys, Xiaomi ranked third globally in smartphone shipments in Q3. In the first 10 months of 2020, the group sold more than 8 million units of smartphones globally with retail price points at or above CNY 3,000 in mainland China and EUR 300 or equivalent in overseas markets.
